The partnership of Butler, Osman, and Ward was formed several years ago as a local tax preparation firm. Two partners have reached retirement age, and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $43,000 are expected. The partnership balance sheet at the start of liquidation is as follows: Cash $39,000 Liabilities $179,000 Accounts receivable 69,000 Butler, loan 39,000 Office equipment (net) 59,000 Butler, capital (25%) 95,000 Building (net) 155,000 Osman, capital (25%) 39,000 Land 145,000 Ward, capital (50%) 115,000 Total assets $467,000 Total liabilities and capital $467,000 Prepare a predistribution plan for this partnership Butler, Loan and Capital Osman, Capital Ward, Capital Beginning balances $ $ $ Assumed loss of Schedule 1 Step one balances $ 0 $ 0 $ 0 Assumed loss of Schedule 2 Step two balances $ 0 $ 0 $ 0
Hi,
I don't know how to prepare a predistribution plan for this partnership. Please help me. Take a look at the photo with my problem.
The partnership of Butler, Osman, and Ward was formed several years ago as a local tax preparation firm. Two partners have reached retirement age, and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $43,000 are expected. The partnership balance sheet at the start of liquidation is as follows:
Cash $39,000 Liabilities $179,000
Accounts receivable 69,000 Butler, loan 39,000
Office equipment (net) 59,000 Butler, capital (25%) 95,000
Building (net) 155,000 Osman, capital (25%) 39,000
Land 145,000 Ward, capital (50%) 115,000
Total assets $467,000 Total liabilities and capital $467,000
Prepare a predistribution plan for this partnership
Butler, Loan and Capital Osman, Capital Ward, Capital
Beginning balances $ $ $
Assumed loss of Schedule 1
Step one balances $ 0 $ 0 $ 0
Assumed loss of Schedule 2
Step two balances $ 0 $ 0 $ 0
Thank you,
Arkadii
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
